Please do 5 thanks 5. Suppose that you have run a Monte Carlo analysis (m sample

Question

Please do 5 thanks

5. Suppose that you have run a Monte Carlo analysis (m samples) and wish to cut the standard deviation in half. How many samples do you need to run? Test the hypothesis that whenever several random variables are added together, the resulting sum tends to normal regardless of the distribution of the variables being added. Sample the sum of 10 random variables from different statistical distribution and test the normality of this sum by constructing the histogram or using other statistical tools. 6.

Explanation / Answer

m=(100*Z*Std Dev/E.Mean)2

This is the formula for the number of samples to be run.

since Std deviation needs to be halved, and is in the numerator of the formula, the sample will have to be run m/4 times.

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